SOURCE: Coronado First Bank

Coronado First Bank

November 01, 2011 12:48 ET

Coronado First Bank Posts Third Quarter Results

CORONADO, CA--(Marketwire - Nov 1, 2011) - Coronado First Bank (the "Bank") (OTCBB: CDFB) announced unaudited financial results for the quarter ended September 30, 2011. The Bank posted a third quarter loss of $74,000 and a year-to-date loss of $841,000. The loss included expenses related to the proposed merger with Embarcadero Bank of $126,000 and $315,000 for the quarter and year-to-date, respectively.

Total assets were $80 million and total deposits were $71 million at September 30, 2011. Core deposits represent 85% of the total deposit base. Management continues to emphasize building a stable balance sheet consisting of core deposits and improving credit quality. Non-interest deposit accounts represented 21% of total deposits. The Bank's net interest margin remained strong, ending the quarter at 4.61%.

The Bank maintained strong capital ratios finishing the quarter with a Tier 1 Capital Ratio of 10.66% and a Total Risk Weighted Capital Ratio of 16.80%, well above the minimum regulatory guidelines.

Bruce Ives, President and CEO, stated, "We are hopeful to have regulatory approval for our merger with Embarcadero Bank in the 4th quarter of 2011. I want to thank the community for the support that you have demonstrated over the years throughout one of the most difficult economic environments of our time. I am confident that with the infusion of additional capital that would result from our merger with Embarcadero Bank, Coronado First Bank will be positioned to maximize shareholder value through greater scale and improved leverage resulting in greater long term profitability. I am honored to have led such a great group of people in the development of an organization that has become a strong community asset with a bright future."

Coronado First Bank is publicly traded on the Over-the-Counter Bulletin Board, ticker symbol: "CDFB." For more information on the Bank please contact:

Bruce Ives at 619-437-1000
www.coronadofirst.com

The numbers in this press release are unaudited. This press release also may include forward-looking statements that involve inherent risks and uncertainties, including the anticipated benefits to be achieved as a result of the merger, the successful integration of the two banks, the equity capital of the combined bank, the potential returns on investment of shareholders, economic conditions and competition in the geographic and business areas in which the Bank operates, inflation, fluctuations in interest rates, legislation and governmental regulation. These statements are subject to risks and uncertainties and actual results could differ materially due to certain risk factors. You should not place undue reliance on forward-looking statements and we undertake no obligation to update those statements whether as a result of changes in underlying factors, new information, future events or otherwise.